Announced Wed, 5 Nov · 13:32 IST

Samvardhana Motherson International Limited has informed the Stock Exchange regarding incorporation of a subsidiary company at Hungary as per Joint Venture Agreement with Sanko Co. Ltd., Japan.

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AI summary

Samvardhana Motherson International has set up a new subsidiary in Hungary named Motherson Sanko Sustainable Packaging Products EU Kft (MSSPP), incorporated on November 3, 2025. This entity will be engaged in designing, manufacturing, and distributing plastic packaging materials, moulded products, pallets, crates, and containers. The shareholding is held 51% by Motherson's step-down wholly owned subsidiary MGI B.V. and 49% by Japan's Sanko Co. Ltd., in line with the Joint Venture Agreement signed on February 7, 2025. Total subscribed capital is Euro 10,000, paid in cash by both partners in their respective shareholding ratio. The entity belongs to the packaging and manufacturing industry and is a greenfield incorporation with no prior turnover.

Likely market impact

This move operationalizes Motherson's European packaging joint venture with a Japanese partner, supporting the company's diversification into sustainable packaging and material handling solutions. While the initial capital outlay is small, it positions Motherson to tap into European demand for plastic packaging products, potentially adding a new revenue stream over the medium term.